In 2024, Japan’s second-largest convenience store chain, Lawson, was delisted from the Tokyo Stock Exchange by its new owners, trading house Mitsubishi and communications giant KDDI.
Lawson has long played second fiddle to market leader 7-Eleven, but could it be poised to overtake its rival in key Asian markets?
In Japan, Lawson operates around 14,000 stores and has expanded to over 7,000 locations in markets such as China, Thailand, the Philippines, Indonesia, and Hawaii. Overseas, Lawson runs a mix of fully owned and franchise outlets. For instance, in Thailand, Lawson operates as a joint venture with the Saha Group.
Lawson has also shown flexibility to adapt to local markets. In Thailand the chain is branded Lawson 108, a number that resonates with auspicious Thais.
Many Asian markets, like Japan, are grappling with an ageing population, and retail work often involves long hours for relatively low pay. This was evident during a recent business trip to Singapore, where I encountered a hastily hand-written sign at a 7-Eleven on Orchard Road that read, “Gone for a break, back in 30 minutes.” The store was closed, yet it was early evening.
Test Marketing
Test marketing is common in Japan due to its large market size and regional consumer preference variations. Following its acquisition by Mitsubishi and KDDI, Lawson is moving into new offices in Tokyo (Takenawa Gateway), a site which include two test stores. These stores are experimenting with robots for cleaning, AI-generated signage, and smartphone cash registers, apparently.
Railway Stations, high traffic locations
Lawson’s test marketing extends beyond Tokyo. Last week, I visited another test store in Osaka, located inside Nakamozu Station in the south of the city. This store, which opened in November 2024, operates without any staff and features slightly different branding as “Lawson Go” with a more compact layout.
Lawson pushes for Asian growth
This month, Lawson announced plans to double its overseas stores by adding another 7,000 outlets. With the increasing number of railway stations in China, Thailand, and Indonesia, is the Osaka test store a blueprint for Lawson’s Asian expansion? Quite possibly.
Despite the prime location of the Nakamozu store near the ticket gate, there is a challenge for potential shoppers: they need to pass through an automated gate to enter. This seemed to deter many, but habits can change quickly with new technology and incentives.
Lawson leverages extensive analytics, including sales data by location and information from Ponta cards, Lawson IDs, and other sources, to inform product development. KDDI, Japan’s second-largest mobile phone operator with around a 30% market share, also contributes valuable insights.